Retaliation at the University: The Consequences of Reporting $2.3 Million in Fraud By Amy Block Joy, PhD
I
’m a scientist by training and profession. For 26 years, my university career was devoted to improving the health of low-income populations. In 1994, while on the faculty of a major public university, I received a million dollar grant and became the director of a federal poverty program.
explanations or lack thereof, I inspected
I was wrong.
the files.
So let’s go back in time to February 27, 2006, the day I discovered an error on a spreadsheet. I had been working on a $60,000 project budget at home and had left my copy of the spreadsheet there. Arriving at work, I asked my administrative manager to bring me the file copy. She did so promptly. I noticed that the file copy was different: this spreadsheet had a $210,000 budget. In the margin was a handwritten note made by my manager: “$150K for Chair.” I ran upstairs to show the spreadsheet and note to my supervisor, the department chair. He waved it off as a math error. I returned and spoke with my manager, who assured me the error would be corrected. Troubled by their explanations or lack thereof, I inspected the files. It didn’t take long to discover a questionable purchase order (PO) in a red folder labeled “CHAIR.”
ABOUT THE AUTHOR
Amy Block Joy, PhD, University of California Faculty/Specialist Emeritus, was employed by the University of California (UC Berkeley, Office of the President, UC Davis) for 33 years. After receiving her PhD (UC Berkeley) in 1979, she began her career in 1980 as a scientist, educator, and administrator. Dr. Block Joy is the author of numerous publications and two books, Whistleblower (2010, Bay Tree Publishing, California) and Retaliation (2013, CreateSpace, South Carolina). She teaches an undergraduate class in ethics at UC Davis and speaks at universities and conferences about her ethical journey. She can be found online at: www.amyblockjoy.com.
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This PO had numerous red flags: inappropriate approval (director hadn’t approved); no separation of duties (my manager purchased and approved); uncommon description (Canon Optura 600); questionable handwritten instructions (“Pick Up from Vendor”); and a cost (expensive) and vendor (a popular electronic goods store) that were suspicious. Stunned, I called the vendor. I learned that my manager had purchased a DVD camcorder for $1,400. This purchase appeared to be inappropriate under our federal guidelines because we didn’t create DVDs. Policy dictated that I COULD THIS BE EMBEZZLEMENT? Policy dictated that I report the alleged misuse to my supervisor, the department chair. I was concerned that such an allegation would get me in hot water. Also, I couldn’t fathom that my hardworking and well-paid manager would take such a risk.
report the alleged misuse to my supervisor, the department chair. I was concerned that such an allegation would get
I wasn’t sure what to do. Over my almost three decades at the me in hot water. university, I’d not received fraud training. In my academic world, we were expected to get along with everyone—especially the department chair.
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Fraud
Troubled by their
By 2006, my program’s annual budget had grown to $14 million. Reviewed and audited by the federal agency more times than I could count, I was confident that things were running smoothly.
I decided to employ a direct approach. If this purchase was a misuse of funds, I knew my duty was to report it. After two days of soul-searching, I did some scientific research: I watched episodes of Law and Order on television. I tried to anticipate how my manager might react: Would she be angry? Would she be frightened? I prepared a brief, fact-based letter and attached the questionable PO. On March 2, 2006, my manager and I went to the chair’s office. I handed a copy of the letter to her and the chair, read its contents out loud, and then asked, “Where’s the DVD camcorder?” “It’s in my garage,” she replied. My instructions were for her to repay the funds to the university and write a letter of explanation. “Your position will be revised, and you’ll be monitored for six months,” I added. The chair interrupted, “You’ll return the item to the store. Amy’s letter will go into my vault.” My manager, not the least bit upset, stated that this was a one-time mistake and left. After she had left, the chair seemed upset at me. “Everyone does it,” he snarled. Using other euphemisms, he continued, “You’re overreacting. This is no big deal. It happens all the time at the university. You’re out of step with the rest of us. You’re too strict. Isn’t she your friend?” He finished by saying, “This is my responsibility.”
The next day, my manager, unable to return the item, gave me a check made out to the university, wrote a letter of explanation, and signed her new position description. IS FOLLOWING POLICY ENOUGH? Although I’d followed policy by reporting the allegation to my supervisor, I remained uncomfortable. This wasn’t enough. For the next five months, the chair, the vice-chair, and I went around and around. Trying to convince the department heads that we, as custodians of federal funds, had the responsibility to report
Aware that going over the chair’s head could be curtains for me; I tried to persuade the chair to take ethical action. He refused. For the next five months, the chair, the vice-chair, and I went around and around. Trying to convince the department heads that we, as custodians of federal funds, had the responsibility to report wrongdoing, I sent e-mails requesting permission to report the issue to the dean’s office. In August, my manager began to approve purchase orders without going through proper channels. When I stripped her of all responsibilities, one of her staff members called me. “Your manager is submitting false travel,” she asserted. How could this be? My manager doesn’t travel!
wrongdoing, I sent
I asked, “How much?”
e-mails requesting
“About a thousand a month for two years,” she replied.
permission to report the
The next morning, I drove to Accounts Payable and reviewed several months’ worth of documents for my manager’s fictitious trips, all approved by the chair. I reported the allegations promptly to the vice-chair.
issue to the dean’s office.
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When I began to argue that this needed to be reported to the dean’s office, he countered with a threat. “People are complaining about you,” he said. Shocked, I bit my tongue.
“Yes, the chair and I were both suspicious about her travel,” the vice-chair admitted on August 24, 2006, at 3:30 p.m. “Please call the dean’s office,” I pleaded. He refused. “This is my responsibility,” he said. “Sit tight. Do nothing.” Outraged, I speculated that the chair and vice-chair had no intention of reporting up the chain of command. Instead, in fact, they were about to tip off the manager. That evening I read more about whistleblowers. I saw that those who exposed wrongdoing often suffered enormously. But that realization didn’t deter me. I would sound the alarm because it was the right thing to do. I wrote a whistleblower report and signed it. At the time, our university didn’t have an anonymous hotline, but I wouldn’t have reported anonymously anyway. It was my duty to report the wrongdoing—and nothing was going to stop me. I sent my report to the chair, the dean, the human resources director, the provost, and the chancellor.
Retaliation began immediately. My office was broken into and ransacked. Served at my home by the dean, I was accused of misuse of government funds by the accused. A few days later, my report arrived at internal audit and everything changed for the better. When I met with the campus auditors, I found a haven. The auditors listened, took immediate action, and secured the evidence.
A few days later, my report arrived at internal audit and everything changed for the better. When I met with the campus auditors, I found a haven. The auditors listened, took immediate action, and secured the evidence. We notified the federal agency, who then alerted its Office of Inspector General. The auditors also explained the allegations against me. I provided documentation to show that the manager’s accusations were false, and I was cleared in November. The auditors, campus police, and federal agents had worked together, and on October 30, 2006, the manager had been served a search warrant. Stolen property was found in her garage. Internal audit further substantiated my allegations and discovered additional wrongdoing. Apparently, while the chair was approving the manager’s POs and travel, the manager was purchasing expensive equipment for the chair’s department. She also created a secret account for the chair’s research on chocolate; hence, the note about the $150K on the spreadsheet.
RETALIATION INTENSIFIES, SO WHISTLEBLOWER TAKES ACTION In February 2007, the manager was indicted for misappropriating $160,000 of government property. Retaliation against me intensified following the media exposure. Enraged colleagues distributed a negative petition to remove me from office. When I found out, I sought and received advice from my neighbor and friend, Daniel Ellsberg, the famous whistleblower who released the Pentagon Papers to the New York Times: “You’ll not regret what you did, but your life will be different…It’s going to get harder but don’t despair when your friends desert you. This is a future-altering event that will change your view of the world forever. Accept your new life and embrace it.”
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RETALIATION BEGINS! When I requested assistance from the dean’s office, I was ignored. Alone, I prepared the notification letter; I put the employee on investigatory leave; and I secured the evidence, including documentation of forgery.
In September 2007, after being falsely accused of violence in the workplace, I filed a complaint of retaliation. My complaint was promptly investigated and substantiated in December. I was cleared of false allegations of violence; the investigation found that the dean’s retaliation had damaged my reputation. The manager was prosecuted by the US Attorney, pled guilty, and It’s possible to blow the was sentenced to one year in prison. Following four years of multiple whistle and keep your investigations, the university paid back $2.3 million. job. After making a good faith disclosure, ALWAYS TAKE THE HIGH ROAD! It’s possible to blow the whistle and keep your job. After making a focus on doing the best good faith disclosure, focus on doing the best job possible, document job possible, document the facts, and work cooperatively with the authorities. the facts, and work I began a new career with research funding, a new office, and a handful cooperatively with the of supporters. I’m now teaching an undergraduate ethics class at the authorities. University of California, Davis.
Fraud
I’m often asked what I’d do differently. Blowing the whistle was certainly the right thing to do. However, next time I’d go straight to the experts—internal auditors! n
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